Nectar Lifesciences to come out with Rs100cr IPO
By Our Corporate Bureau | 07 Jun 2005
New Delhi: Chandigarh-based Nectar Lifesciences that manufactures cephalosporin (antibiotic used to treat bacterial infections) and semi-synthetic penicillin, is planning to raise Rs100 crore through an initial public offering.
According to the company the funds will be used for strengthening its presence in the cephalosporin segment as well as for entering the non-antibiotic segment.
The company proposes to make a fresh issue of 38.7 lakh shares of Rs10 each through the initial public offering. The offer will constitute 26 per cent of the fully diluted post-offer paid-up capital.
The revenues of the company have been growing at about 15 per cent in the last five years. For the year ended March 31, 2005, it achieved a sales turnover of Rs232.7 crore with a net profit of Rs22.6 crore.
The company is also planning to set up a sterile cephalosporin US FDA-approvable plant, along with putting in place a formulation facility at Baddi in Himachal Pradesh. A part of the money will also be used in funding its research and development (R&D) and setting up a quality control centre at Derabasi (Punjab).
Nectar Lifesciences currently manufactures both oral and sterile bulk drugs and is a supplier to several domestic pharmaceutical companies. The company is also focusing on the development of more value-added cephalosporin products.
Sanjiv Goyal, managing director of Nectar Lifesciences said, "The strength of the company is in the range of products, which is expanding each year. The R&D team of our company is working on developing new molecules, improving the existing ones and bringing in cost efficiencies."
